AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 3/6 · 18/10/2026
Moat—
Insufficient evidence for every rubric criterion; no category score is inferred.
structural advantage · — · Concessions establish resource access, but comparative costs and protected economic returns are missing.
durability · — · Long concession terms and LNG commitments support operating continuity, but do not establish persistence of an economic advantage.
customer dependency · — · Binding LNG offtake provides a contractual relationship; customer reliance, replacement alternatives and switching friction are not established.
erosion resilience · — · Project achievements coexist with commodity sensitivity and actual supply disruptions; no established advantage can be tested for resilience.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · 2/4 · 2025 upstream realizations weakened, while 2026 disclosed liquids realizations improved and U.S. natural-gas realizations declined. Outcomes are mixed and do not establish discretionary price setting.
retention · 2/4 · Binding long-term contracts covering most operated Australian equity LNG offtake support committed repeat demand. This is indirect evidence of retention, with no supplied renewal rates, customer histories or comparable company-wide coverage.
margin resilience · 2/4 · Higher downstream margins partly offset 2025 upstream weakness. International downstream margins then weakened in first-quarter 2026 but improved over the first half. This demonstrates mixed resilience across businesses and periods, without proving a moat.
contractual freedom · — · Commodity exposure limits demonstrated pricing power, but the supplied selling contracts do not disclose price-setting, repricing or termination rights. Long-term LNG commitments alone cannot establish contractual freedom.
Predictability66
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 25.00
- Revenue growth volatility (pp)
- 26.18
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 3.04
Financial strength65
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 70.63
- netDebtEbitGrade
- 57.63
- interestCoverageGrade
- 100.00
- currentRatioGrade
- 32.38
- Debt / FCF (x)
- 3.06
- Net debt / operating income (x)
- 2.12
- Current ratio (x)
- 1.15
Capital allocation—
Missing required inputs: sbcRevenue. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 14.33
- 3-year average dilution (%)
- -1.40
- cashConversionGrade
- 100.00
Management69
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · 2025 free cash flow of $16.6 billion fell short of $12.8 billion dividends plus $12.1 billion repurchases, while debt increased. First-half 2026 operating cash flow covered capex and cash distributions with substantial debt repayments. These are mixed actual outcomes; acquisition returns and repurchase value creation remain unproven.
incentive alignment · 3/4 · Actual CEO and other NEO ownership exceeded requirements. The final 2023 performance-share multiplier was 15%, demonstrating downside sensitivity, alongside holding and clawback provisions. Interim 2024 and 2025 multipliers are not treated as final payouts.
execution · 3/4 · Reported TCO ramp-up, production growth and higher refinery throughput demonstrate operational delivery. Acquisition-driven growth is distinguished from organic execution. Relative TSR and ROCE-I rankings temper the conclusion; project delivery does not establish superior investment returns.
governance · 3/4 · Disclosed existing practices include independent committee leadership, majority voting, annual director elections, compensation oversight and actual stockholder engagement. The combined chair/CEO role and limited evidence of oversight effectiveness prevent an exceptional assessment; proposal recommendations are not treated as adopted changes.
Evidence
Israel Chevron holds a 39.7 percent-owned and operated interest in the Leviathan field, which operates under a concession that expires in 2044.
Business properties: Leviathan concession · Filed 26/02/2024
The company also holds a 25 percent-owned and operated interest in the Tamar gas field, which operates under a concession that expires in 2038.
Business properties: Tamar concession · Filed 26/02/2024
Partitioned Zone Chevron holds a concession to operate the Kingdom of Saudi Arabia’s 50 percent interest in the hydrocarbon resources in the onshore area of the Partitioned Zone between Saudi Arabia and Kuwait.
Business properties: Partitioned Zone concession rights · Filed 26/02/2024
The concession expires in 2046. Current activities focus on base business optimization and safely re-starting drilling activities.
Business properties: Partitioned Zone concession expiry · Filed 26/02/2024
The energy companies most similar to Chevron in size, complexity, geographic reach, business lines, and location of operations are BP, ExxonMobil, Shell, and TotalEnergies.
Compensation peer discussion: named similar energy companies · Filed 07/04/2026
The most significant factor that affects the company’s results of operations are the prices of crude oil, natural gas, and natural gas liquids, which can be influenced by general economic conditions and level of economic growth, including low or negative growth; industry production and inventory levels; technology advancements, including those in pursuit of a lower carbon economy; production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries or other producers; weather-related damage and disruptions due to other natural or human causes beyond our control; competing fuel prices; geopolitical risks; the pace of energy transition; customer and
Risk factors: commodity-price drivers · Filed 24/02/2026
Refined product sales were down 186,000 barrels per day, or 13 percent, compared to the year-ago period due to supply disruption from the Middle East conflict and lower demand for gasoline and diesel fuel.
International downstream: realized supply disruption and demand decline · Filed 06/08/2026
The decrease in income before taxes for the company was primarily the result of higher upstream depreciation, depletion and amortization, lower upstream realizations, unfavorable foreign exchange impacts, and higher operating costs, partially offset by higher upstream sales volumes and higher downstream margins.
MD&A: causes of lower 2025 pretax income · Filed 24/02/2026
Most of the equity LNG offtake from the operated Australian LNG projects is committed under binding long-term contracts, with some sold in the Asian spot LNG market.
LNG marketing: binding long-term Australian offtake · Filed 24/02/2026
Upstream Net crude oil and natural gas liquids production MBD 1,491 1,218 1,476 1,189 Net natural gas production(3) MMCFD 3,520 2,864 3,450 2,861 Net oil-equivalent production MBOED 2,077 1,695 2,051 1,666 Sales of natural gas MMCFD 5,794 5,594 5,934 5,506 Sales of natural gas liquids MBD 583 514 577 511 Revenue from net production Crude $/BBL $ 95.66 $ 61.49 $ 82.43 $ 65.52 NGLs $/BBL $ 21.56 $ 18.39 $ 19.90 $ 20.75 Liquids (weighted average of Crude and NGLs) $/BBL $ 70.80 $ 47.77 $ 61.52 $ 51.40 Natural gas $/MCF $ 0.91 $ 1.75 $ 1.67 $ 2.12 International Upstream Net crude oil and natural gas liquids production MBD 1,094 850 1,034 836 Net natural gas production(3) MMCFD 5,390 5,099 5,277 5,235 Net oil-equivalent production MBOED 1,993 1,701 1,914 1,708 Sales of natural gas MMCFD 5,556 5,507 5,481 5,443 Sales of natural gas liquids MBD 152 110 141 122 Revenue from liftings Crude $/BBL $ 99.38 $ 60.61 $ 90.22 $ 65.04 NGLs $/BBL $ 27.00 $ 22.27 $ 26.05 $ 23.83 Liquids (weighted average of Crude and NGLs) $/BBL $ 96.41 $ 58.88 $ 87.38 $ 63.12 Natural gas $/MCF $ 7.84 $ 7.20 $ 7.43 $ 7.16 U.S.
Operating statistics: upstream realized prices and volumes · Filed 06/08/2026
International downstream earnings decreased by $1.2 billion primarily due to lower margins on refined product sales of $1.1 billion, including unfavorable timing effects, and higher operating expenses of $140 million, mainly from higher transportation costs.
First-quarter 2026 international downstream earnings bridge · Filed 07/05/2026
International downstream earnings increased by $889 million primarily due to higher margins on refined product sales of $610 million and an asset sale gain of $230 million.
First-half 2026 international downstream earnings bridge · Filed 06/08/2026
$ millions 2025 Net cash provided by operating activities 33,939 Less: Capital expenditures 17,347 Free Cash Flow 16,592 Net debt-to-CFFO The sum of total debt, including finance lease liabilities, less cash and cash equivalents, time deposits and marketable securities, divided by CFFO, which measures the company’s ability to cover its net debt using the cash it generates from operations.
Appendix A: 2025 operating cash flow, capex and free cash flow · Filed 07/04/2026
During 2025, the company purchased a total of 79.9 million shares for $12.1 billion and paid an additional $146 million in excise taxes related to 2024 buybacks.
Liquidity and capital resources: actual 2025 repurchases · Filed 24/02/2026
Dividends Dividends paid to common stockholders were $12.8 billion in 2025 and $11.8 billion in 2024.
Liquidity and capital resources: actual dividends · Filed 24/02/2026
Debt and Finance Lease Liabilities Total debt, including finance lease liabilities, was $40.8 billion at December 31, 2025, up from $24.5 billion at year-end 2024.
Liquidity and capital resources: 2025 debt increase · Filed 24/02/2026
5 Table of Contents CHEVRON CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) Six Months Ended June 30 2026 2025 (Millions of dollars) Operating Activities Net Income (Loss) $ 14,507 $ 6,027 Adjustments Depreciation, depletion and amortization 11,890 8,467 Dry hole expense 144 177 Distributions more (less) than income from equity affiliates 474 1,176 Net before-tax losses (gains) on asset retirements and sales (232) (299) Net foreign currency effects 168 470 Deferred income tax provision 34 509 Net decrease (increase) in operating working capital (1,680) (2,130) Decrease (increase) in long-term receivables 129 (10) Net decrease (increase) in other deferred charges 133 (227) Cash contributions to employee pension plans (396) (444) Other (24) 49 Net Cash Provided by Operating Activities 25,147 13,765 Investing Activities Acquisition of Hess Corporation common stock — (2,225) Capital expenditures (8,601) (7,639) Proceeds and deposits related to asset sales and returns of investment 355 990 Net maturities of (investments in) time deposits 1 — Net repayment (borrowing) of loans by equity affiliates 979 (176) Net Cash Used for Investing Activities (7,266) (9,050) Financing Activities Net borrowings (repayments) of short-term obligations (794) 1,891 Proceeds from issuances of long-term debt 99 5,491 Repayments of long-term debt and other financing obligations (3,069) (2,651) Cash dividends - common stock (7,030) (5,918) Net contributions from (distributions to) noncontrolling interests (269) (30) Net sales (purchases) of treasury shares (4,480) (6,432) Net Cash Provided by (Used for) Financing Activities (15,543) (7,649) Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash (41) 47 Net Change in Cash, Cash Equivalents and Restricted Cash 2,297 (2,887) Cash, Cash Equivalents and Restricted Cash at January 1 7,285 8,262 Cash, Cash Equivalents and Restricted Cash at June 30 $ 9,582 $ 5,375 See accompanying notes to consolidated financial statements.
Consolidated cash flows: first-half 2026 investment, distributions and debt repayment · Filed 06/08/2026
Wirth had a stock ownership base salary multiple of 17.9.
Executive compensation: actual CEO ownership multiple · Filed 07/04/2026
All other NEOs met their respective ownership requirement and had an average stock ownership base salary multiple of 7.0.
Executive compensation: other NEO ownership compliance · Filed 07/04/2026
• For performance shares: reflects the final performance multiplier of 15% for 2023 grant and interim performance multipliers of 80% and 0%, respectively, for 2024 and 2025 grants, multiplied by Chevron’s 20-day trailing average price of Chevron common stock at the end of the 2025 performance period ($150.06) for the 2023 grant, and Chevron’s stock price at 12/31/2025 ($152.41) for 2024 and 2025 grants, including dividend accruals.
Executive compensation: final versus interim performance-share multipliers · Filed 07/04/2026
what we do Robust stockholder engagement plan to ensure alignment with stockholder interests Stock ownership guidelines for the Chief Executive Officer, six times base salary; for all other executive officers, four times base salary Two-year RSU post-vesting holding period for executive officers MCC has discretion to reduce performance share payouts Deferred accounts inaccessible until a minimum of one year following termination Limited perquisites and personal benefits Misconduct-based, discretionary forfeiture, and repayment provisions included in the CIP, long-term incentive plans, Deferred Compensation Plan, Retirement Restoration Plan, and Employee Savings Investment Plan–Restoration Plan Company’s Dodd-Frank Clawback Policy intended to supplement discretionary forfeiture and repayment provisions in compensation plans by mandating recovery of certain incentive-based compensation from Section 16 reporting officers in the event of a required accounting restatement Significant CEO pay at risk (92%) Thorough assessment of Company and individual performance MCC composed entirely of independent Directors Independent compensation consultant hired by and reports directly to the MCC Annual assessment of incentive compensation risks what we don’t do X No individual supplemental executive retirement plans X No stock option repricing, reloads, or exchanges without stockholder approval X No loans or purchases of Chevron equity securities on margin X No transferability of stock options (except in the case of death) X No stock options granted below fair market value X No hedging or pledging of Chevron equity securities X No change-in-control agreements for NEOs X No tax gross-ups for NEOs X No “golden parachutes” or “golden coffins” for NEOs Chevron Corporation 2026 Proxy Statement 49 Table of Contents executive compensation compensation discussion and analysis in detail compensation planning and governance The graphic below illustrates the timing and key governance elements of the executive compensation planning cycle: The MCC oversees executive compensation programs and policies.
Executive compensation: existing ownership, holding, clawback and oversight provisions · Filed 07/04/2026
In Kazakhstan, the Future Growth Project started up and ramped to design capacity of more than one million BOED of gross production in less than 30 days.
Stockholder letter: reported TCO startup and ramp achievement · Filed 07/04/2026
Production The company’s worldwide net oil-equivalent production in 2025 was 3.7 million barrels per day, 12 percent higher than in 2024 primarily due to the acquisition of Hess and growth in TCO, the Permian Basin and the Gulf of America, which were partly offset by the impacts of asset sales.
MD&A production: realized 2025 growth and its sources · Filed 24/02/2026
• Achieved our highest U.S. refinery throughput in 20 years, with fewer refineries, due to recent expansion projects and efficiency improvements.
Business highlights: realized refinery throughput improvements · Filed 07/04/2026
Chevron came in sixth place for TSR and fourth place for ROCE-I.
Executive compensation: realized relative TSR and ROCE-I rankings · Filed 07/04/2026
A fixed policy requiring a separation of the roles of Chairman and CEO is unnecessary because of Chevron’s many other strong corporate governance practices, including the annual election of all Directors, a majority vote requirement in uncontested elections of Directors, an overwhelming majority of independent Directors, independent leadership of all committees, proxy access, independent Director access to employees, annual Board and individual Director assessments, and publicly available Corporate Governance Guidelines.
Board response to independent-chair proposal: existing governance practices · Filed 07/04/2026
In 2025, we reached out with offers of engagement to over 120 stockholders representing over 45% of Chevron’s outstanding common stock and held more than 95 one-on-one environmental, social, and governance-focused meetings with stockholders representing over 40% of outstanding shares.
Corporate governance: actual 2025 stockholder engagement · Filed 07/04/2026
These companies are key competitors for stockholder investments within the larger global energy sector.
Peer discussion: competition specifically for stockholder investment · Filed 07/04/2026
